Exam 3: The Theory of Consumer Choice

The implicit cost of time spent on shopping:

Choosing a combination of goods represented by a point inside the production possibilities frontier indicates:

After spending $5 million developing a new MP3 player,you discover that a competitor is about to introduce a new model similar to yours at a lower per unit price.The $5 million development cost:

A linear production possibility frontier exhibits a(n)_____ opportunity cost of producing either good.

In microeconomics,the term price generally refers to the:

The opportunity cost of traffic congestion includes:

-Refer to the production possibility frontier in Figure 1-1.What will be the opportunity cost of moving from point B to point A to produce 10 more computers?

Petroleum oil is an example of:

Positive economics differs from normative economics in that:

Draw a production possibility frontier for the production of corn and steel,identifying the efficient points,feasible points,and infeasible points.Illustrate and explain increasing opportunity cost.

Which one of the following is not an opportunity cost of owning a house?

Which of the following is generally considered a microeconomic question?

-Consider the production possibility frontier of an economy in Figure 1-1.What is the opportunity cost of moving from point B to point C to produce 5 more apples?

If a production possibility frontier is drawn concave to the origin with the quantity of shoes on the X-axis and the quantity of T-shirts on the Y-axis,a movement downward along the PPF reflects:

Which of the following is true of positive analysis?

-In the production possibility frontier in Figure 1-1,which point(s)is (are)infeasible?

The test of a theory is whether:

Which one of the following represents an economic,but not an accounting,cost of owning a restaurant?

If the nominal price of apples has increased by 20 percent over a year in which the average price level has risen by 10 percent,then the real price of apples:

What would be the impact on the real price of automobiles if the nominal price increases by 60 percent over a ten year period?